The Yield Trap: It’s Time to Rethink Your ROI Strategy

With commodity prices low—and economists not expecting a rebound anytime soon—maximizing profitability per acre is more important than ever. Many farmers are operating on razor-thin margins, and it’s easy to fall into the “yield trap”: the belief that higher yields always lead to higher profits. But PCM data tells a different story.
Here are key takeaways from our recent webinar on how to escape the yield trap and make the most of every dollar you invest in your operation. (Watch the full replay below.)
1. Rethink Your Nitrogen Strategy
- Apply the majority of your nitrogen fertilizer in the spring, when it’s most likely to be used by the crop.
- Consider MRTN Rates (which often successfully predicts the most profitable N range) and communicate with your custom applicator about the rates you want to apply. For most farmers, applying nitrogen above this range negatively impacts profitability.
2. Cut Power Costs Without Cutting Corners
- Combine passes across the field whenever you can to reduce fuel and labor expenses.
- Choose lighter tillage systems. PCM data shows that 1-pass-light and 2-pass-light tillage are often the most profitable options.
3. Approach New Practices with a Plan
- If you are new to cover crops, carefully consider if this is the right year to give them a try.
- PCM data shows that farmers new to this practice need to incorporate conservation payments to ensure they remain profitable while they fine tune their strategy.
4. Stack Conservation Payments for More ROI
- PCM can help you access up to $60 per acre in conservation incentives through our programs and partners.
- Your PCM Specialist can also help you stack compatible payments to maximize revenue while staying in compliance with your contracts.
5. Don’t Go It Alone – Support Is Available
Farming is tough—especially now. If you or someone you know is struggling, there are confidential resources available to support you and your family:
- Farm Family Resource Initiative
- Illinois Agricultural Mental Health Voucher Program
- Illinois Extension Farm Stress Resources
Let PCM Help You Identify What’s Working
Every farm is different, but one thing is consistent across all operations: profitability depends on making data-driven decisions. PCM offers free, personalized financial benchmarking to help you understand what’s making you money—and what isn’t.
Enroll today to take the next step toward farming smarter, not harder.